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Accounts payable and accrued expenses, and Other noncurrent liabilities

12 Months Ended

Sep. 30, 2022

Accounts payable and accrued expenses, and Other noncurrent liabilities

9. Accounts payable and accrued expenses, and Other noncurrent liabilities

Accounts payable and accrued expenses consist of the following:


	September 30,
	2022		2021

	(Amounts in thousands)
Accounts payable	$	19,241	$	11,271
Commissions		631		305
Compensation and fringe benefits		1,607		1,233
Professional fees		175		300
Taxes, other than income		211		136
Finance lease liability		4		47
Operating lease liability		550		569
Product warranty		44		67
	$	22,463	$	13,928

The Company enters into certain multi-year agreements with vendors when also entering into some of the multi-year contracts the Company enters into with customers. See Note 3 Accounts and Long-Term Receivable for further information related to the multi-year agreements with customers.

There was not an interest rate stated in the agreements and therefore interest was imputed under ASC 835 Interest as the payments in the exchange represented two elements: principal and interest. The imputed interest rate for the agreements was determined to be 5.0%. The rate was determined primarily based on the rate the Company could obtain by financing from other sources at the date of the transaction.

Interest expense related to these agreements was $260 thousand and $190 thousand for the years ended September 30, 2022 and 2021, respectively.

The amounts owed for these agreements are within accounts payable and other noncurrent liabilities because they are owed to a vendor rather than banks or financial institutions for borrowings. See Note 12 Line of Credit and Note 13 Notes Payable for amounts due to banks and other financial institutions for borrowings.

Below are details of the aforementioned agreements with the vendors that contain imputed interest:


	September 30, 2022		September 30, 2021
	(Amounts in thousands)
Current	$	1,758	$	1,627
Less: discount		184		247
Accounts payable and accrued expenses	$	1,574	$	1,380

Noncurrent	$	3,186	$	4,682
Less: discount		138		315
Other noncurrent liabilities	$	3,048	$	4,367

The Company had a total of approximately $16.1 million due (net of interest) to one of these vendors as of September 30, 2022. This is approximately 63% of Accounts payable and other noncurrent liabilities. The majority of this balance involves one large transaction that occurred in the fourth quarter of fiscal year 2022. The Company had a total of approximately $7.8 million due (net of interest) to one of these vendors as of September 30, 2021. This is approximately 41% of Accounts payable and other noncurrent liabilities.The TS segment has many vendors it transacts with and does not have any specific agreement with this vendor that it must purchase certain products from the vendor. Management believes other suppliers could provide similar products on comparable terms.